South Korea

Latest tax guidelines summarizing startup support systems and mandatory reporting requirements for business owners to ensure compliance. Disclaimer:This article is compiled and summarized based on publicly available information and is for general information and academic exchange purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. For

As of 24 July 2026, the Korean National Tax Service (NTS) has issued Notice 26-020 directing intensified enforcement actions targeting unreported income and concealed transactions within everyday citizen economic activities. The regulation stems from recent audit findings revealing systematic underreporting of cash-based services, peer-to-peer rentals, and digital platform earnings. Tax authorities will deploy cross-agency data

Effective 24 July 2026, the Korean National Tax Service released Notice 260-19 imposing stricter reporting obligations on real-estate dealings to combat rising transaction-based tax avoidance schemes. The directive mandates that all property transfers, including gifted assets and off-balance-title arrangements, be reported within 30 days of contract signing. Enhanced scrutiny applies to speculative flipping, undisclosed joint-ownership

Published 24 July 2026, Notice 26-015 expands the NTS’s enforcement framework for virtual-asset income, targeting both resident holders and non-resident beneficiaries of crypto-currency gains. The directive requires domestic exchanges to submit detailed trader-to-trader transaction logs monthly, while non-resident investors must declare overseas-held digital assets through the newly established 해외가상자산 신고 시스템 (Overseas Virtual-Asset Reporting System).

Notice 26-018, released on 24 July 2026, streamlines the value-added tax refund process for enterprises supplying services abroad, aiming to reduce administrative burdens and accelerate cash flow for exporters. The amendment permits electronic submission of export-service invoices through the VAT refund portal, eliminating the prior requirement for paper-based certification from foreign recipients. Refund processing times

Effective 24 July 2026, Notice 26-017 introduces a comprehensive tax-welfare integration package designed to stabilize low-income household finances through targeted tax reductions and direct transfer synergies. The measure expands the eligibility ceiling for the child-care tax credit, increases the earned-income tax credit percentage for marginal workers, and coordinates with the National Basic Livelihood Security System

Notice 26-013, promulgated on 24 July 2026, strengthens transfer-pricing documentation requirements for multinational enterprises operating through Korean subsidiaries. The regulation mandates that master-file and local-file updates be submitted within 90 days of fiscal-year close, reducing the prior 180-day window. New mandatory templates now require granular analysis of intra-group service transactions, intangible-license royalties, and cost-sharing arrangements,

Notice 26-014, issued on 24 July 2026, revises the tax treatment of employee stock options (ESOPs) granted by listed and unlisted Korean corporations, aiming to curb tax-motivated option exercises and ensure accurate valuation at exercise. The amendment mandates that the fair-market value at the time of option grant be objectively determined using a third-party appraisal,

On 22 July 2026, the National Tax Service of Korea released official guidance addressing compliance requirements under the updated transfer pricing framework and its interaction with the OECD Global Minimum Tax framework, commonly referred to as Pillar Two. The amendments aim to strengthen administrative coherence for multinational enterprises operating within Korea, providing clearer obligations regarding